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Amateur Investors Weekend Market Analysis (5/19/07)

http://www.amateur-investor.net/Weekend_Market_Analysis_May_19_07.htm

<SNIP>The Dow continues to make new all time highs however when you look at the 30 stocks that compose the Dow you would never believe it's currently 1800 points above the previous all time that occurred on January 14th of 2000 which was at 11723. A table of the 30 stocks that make up the Dow is shown below with their closing prices on 1/14/00 versus their recent prices on May 18th of 2007.

Notice only 13 out of the 30 stocks that make up the Dow are higher today than on 1/14/00. Also basically only 5 stocks (BA, CAT, MO, UTX and XOM) have made substantial gains during the past 7 years with a return of 100% or more. MO has been the leader with a gain of 283% since 1/14/00 followed by CAT which has gained 188% since 1/14/00. It's pretty amazing that only 5 stocks in the Dow are considerably higher now from their closing prices on January 14th of 2000 even though the Dow is currently 1800 points higher than its previous all time high made 7 years ago. Thus it's obvious when an index only consists of a small group of stocks it can be moved higher by just a few stocks versus a large index such as the Nasdaq or S&P 500 which consists of hundreds of stocks.